Heider's Attribution Theory, developed by psychologist Fritz Heider, explains how people interpret and understand the causes of behavior. It suggests that individuals attribute actions to either internal factors, such as personality traits, or external factors, like situational influences. This helps people make sense of their own behavior and that of others. The theory emphasizes the importance of these attributions in shaping perceptions and interactions. For example, if someone fails a test, one might attribute it to a lack of effort (internal) or to difficult questions (external). Understanding these attributions can improve communication and reduce misunderstandings in social situations.